BACKGROUND

Greater Manchester has focused efforts on priority scaleup sectors – digital, technological and life science sectors – highlighted in audit of the region’s strengths. 

The LEP has built its approach on what has worked elsewhere and offers a range of targeted programmes working with private and public sector partners for fast-growing businesses in different stages of development requiring different levels of support. A standout programme is Manchester’s Global Scale-up which is designed to support ambitious businesses access markets overseas. The most recent programme is the Creative Scale-up Programme which launched in January as part of a DCMS funded pilot programme (based on SUI and CIC work) is also taking place in the West Midlands and West of England.

ONS data for 2018 shows that there are 1,375 scaleups in the Greater Manchester LEP: 600 are classified as scaleups due to rapid growth in their employees, 1,105 are classified as scaleups due to rapid growth in their turnover and 330 are scaleups that are increasing both employment and turnover simultaneously.

The ONS data reflects that across the four-year period from 2015 to 2018 the density of scaleups has increased by 0.39 per 100,000 of population per year, which is below the median of +0.68 per 100,000 of population.

SCALEUP PROGRAMMES

Scaleups in the Greater Manchester can access a range of programmes linked to priority sectors including:

• Global Scale-up – a fully funded public/private collaboration between The Growth Company and KPMG, Santander, DWF and Manchester Airport – working closely with Greater Manchester Combined Authority and Department for International Trade. It takes high growth businesses ready to expand rapidly internationally through a 4-stage process: Onboarding, International Growth Sprints, International Visit and Bootcamps. Each business is assigned a dedicated account manager. For the international visit phase of the programme, opportunities are curated overseas using the global networks of the programme partners. 

• Amplify  – a scaleup programme for businesses with 10+ staff in the digital, creative and tech sectors designed to help them grow rapidly. Over nine months leadership teams are coached to lift their growth ambitions. During Covid this part-funded programme was put on hold but learnings from the programme are being embedded into a new fully funded Exceed Programme which has similar objectives although with a slightly different delivery structure. It has been adapted to help businesses tackle the current challenges they are facing due to COVID-19 as well enabling them to position themselves as strongly as possible to move into the recovery phase and bounce back into growth.

• Creative Scale-up – a new initiative designed to empower creative businesses in the region to realise their full growth potential and win investment to take their business to the next level, both regionally and internationally. This is dovetailed with an investor programme running adjacent to build capacity and increase understanding of the creative indusitries and its sub-sectors among existing and new investors. The ScaleUp Institute is working collaboratively with UKBAA, GC Angels, sector stakeholders and investor groups to develop these tools. 

The Growth Company also offers specific sector focused programmes for food and drink businesses, Recipes4Success, and health sector scaleups, STEP into Healthcare. 

IMPACT AND RESULTS

Global Scale-Up Businesses in Cohort 1 have seen a £24m increase in revenue, £2.2m raised in investment and made 56 new connections to potential overseas buyers and collaborators. 

Amplify has supported 28 businesses which has led to £1.2m increase in revenue for Amplify businesses; and around 2 to 3 additional jobs created per business in the period.

LESSONS LEARNED

The Creative Scale-up programme has learnt that the use of online delivery has opened-up more opportunities for engagement, both in terms of group sessions and one to one, making programme participation easier for businesses. Another insight is that the encouragement of networking between participants, generates new opportunities for innovation and business growth. Developing a more structured approach will provide a valuable addition to a future programme.

FUTURE PLANS

Amplify has been adapted to help businesses tackle the current challenges they are facing due to Covid-19 as well enabling them to position themselves as strongly as possible to move into the recovery phase and bounce back into growth. The new programme called Exceed is fully funded.

Amplify has helped drive clarity in our business, leading to better alignment, increased productivity and a solid strategic plan.
Matt Haworth, Co-founder, Reason Digital

The Global Scale-up team has been instrumental in supporting us during the turbulent times we’ve all just faced. I can only commend their willingness to introduce, connect and support Just Strong as we prepare for our next stage of growth. With high growth in a relatively new business, it’s been very important for us to have the right help on hand.
Just Strong

LONGITUDINAL ANALYSIS

According to ScaleUp Institute analysis of data received directly from ONS for years 2015-2018, the following picture emerges on the local environment.

Local Authorities located within the Greater Manchester LEP have a moderate density of scaleups, and the trend between 2015 and 2018 reveals that some of the local authorities showed an increase in the density of scaleup businesses, but few showed an above median increase in scaleup density.

Scaleups by Density: Good

The vertical axis of this matrix shows where local authorities located in this LEP stand compared to the rest of the UK: 5 of the 10 local authorities have an above median density of scaleups measured by employment growth and 5 of the 10 local authorities have an above median density of scaleups measured by turnover growth.

Scaleup Trends Over Time: Moderate

The horizontal axis of this matrix shows whether the density of scaleups has increased or decreased over time relative to the rest of the UK: 6 of the 10 local authorities are above the median in terms of improving the density of scaleups by employment in their community and 7 of the 10 local authorities are below the median for scaleups by turnover.

The ScaleUp Institute will continue to monitor this closely in the coming years to track whether local initiatives move the dial in the right direction for increasing the density of scaleups.